The government believes that in November 2022, there was a large wave of customers looking to make large withdrawals, which caused the overall value of the company to tank. FTX, at one point valued at $32 billion, was down to a value of essentially nothing within a week span. On November 11, Bankman-Fried resigned from the company, and filed for Chapter 11 bankruptcy. His crypto empire scheme finally crumbled and was exposed for what it really was – a facade.
USA v. Bankman-Fried, case number 1:22-cr-00673; Securities and Exchange Commission v. Bankman-Fried, case number 1:22-cv-10501; and Commodity Futures Trading Commission et al. v. Bankman-Fried et al., case number 1:22-cv-10503, all in the U.S. District Court for the Southern District of New York.
